Covetrus, Inc. engages in developing technologies and services for animal health industry. It also provides products, software, and services to help drive improved patient health, strong client relationships, and successful financial outcomes for veterinary professionals.
Take a look at the 1-year chart of Covetrus (NASDAQ: CVET) below with my added notations:
During the past few weeks, CVET has formed a key level of resistance to watch at the $12 (red) mark. The stock tested that $12 mark again earlier this week. A solid close above that $12 level should lead to higher prices for CVET.
The Tale of the Tape: CVET has a key level of resistance at $12. A long trade could be entered on a breakthrough of that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $12.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT